Garissa University risks being shut down if the government does not intervene to pay workers and suppliers.
The university has a debt of about Sh84 million owed to suppliers and service providers.
A Sh10 million annual budget for police allowances is eating into the dwindling university funds.
The university was attacked by terrorists in April, 2015. Some 147 people were killed, most of them students. Al Shabaab militants raided the institution, which was then a constituent college of Moi University.
The uproar from local and national leaders to revive the university seems wasted as the college is yet to receive the Sh500 million pledge from the government.
The money was to help re-build the institution. Officials said the money was to be spent on a library, an administration block, a cafeteria and a laboratory. The university was also to hire more lecturers.
A perimeter wall was proposed to improve security of students and staff. However, the project has stalled as no money has been released yet.
The university is struggling to sustain lecturers and other staff since they are paid hardship allowance of Sh30 million annually, which is not in the ministry’s budget.